Polkadot solves blockchain pain points, concludes EQONEX in latest research report

Rhea-AI Summary

EQONEX Labs released a comprehensive research report on the Polkadot protocol, emphasizing its potential to address key blockchain challenges such as fragmentation, governance, and scalability. CEO Richard Byworth highlighted Polkadot as a strong investment opportunity, asserting its capability to unify blockchains while offering decentralized governance. The report notes that Polkadot can currently handle 1,000 transactions per second, with expectations to scale beyond one million post-launch of parachains. Currently, the DOT token has a market cap of $33 billion, with a significant price increase of over 200% since July 2021.

Positive

• Polkadot capability to handle 1,000 transactions per second, with potential for over 1 million after full launch.
• Current market capitalization of DOT at $33 billion, positioning it as the 8th most valuable asset in cryptocurrency.
• Price of DOT surged over 200% since mid-July 2021.

Negative

• Polkadot not fully launched, lacking parachain functionality, which may limit immediate scalability.
• Current price of DOT is significantly below its high of $48 in May 2021.

SINGAPORE, Oct. 28, 2021 /PRNewswire/ -- EQONEX Labs, the crypto research arm of Nasdaq-listed EQONEX Limited (Nasdaq: EQOS), today released an easily downloadable, in-depth research report, analyzing the evolution and adoption of the Polkadot protocol.

Blockchain technology has provided a multitude of opportunities to revamp the financial ecosystem and for investors to participate in a new asset class. However, the ecosystem is plagued by three main issues – a so-called 'trilemma' comprising: fragmentation (the lack of interoperability), governance, and scalability.

According to EQONEX CEO Richard Byworth, "Polkadot presents a strong investment opportunity given the technology was developed to address the issues inherent in blockchain. While some commentators are describing Polkadot as a challenge to Ethereum, we see it as a valuable next-generation ecosystem that has the potential to deliver enormous value, and this was our rationale for listing a Polkadot (DOT) token on the exchange and adding it to our Digivault custody offering ".

"The Polkadot project represents a paradigm shift in the world of blockchain technology by introducing a protocol which brings several game changers, including democratic governance, interoperability between multiple blockchains, and a highly modular and upgradeable blockchain development framework. Though not fully launched, Polkadot shows a tremendous amount of potential," said Claire Zhao, Blockchain Researcher at EQONEX and one of the authors of the report.

Key Findings:

• Polkadot is a blockchain of blockchains - A protocol which introduces mechanisms to govern blockchains in a decentralized manner. Powered by the Substrate development framework, developers are able to construct specialized, custom-built blockchains tailored to the needs of their projects.
  
  
• Blockchain Interoperability - Polkadot connects independent blockchains into one unified network, including public, private, and consortium networks. This opens the door to interoperability, which is the ability for blockchains to communicate with one another, paving the way for the creation of a truly decentralized blockchain environment, where owners of usually incompatible cryptocurrencies may communicate with one another in a trustless, secure manner.
  
  
• Decentralized Governance - The governance of a protocol alludes to the ability of users of the protocol to decide the future direction of the project. Holders of the Polkadot token on the Relay Chain can participate in a sophisticated governance process, where they can propose changes via referenda, which covers topics such as deciding on payment changes in network fees.
  
  
• Scalability - Polkadot is not fully live and does not have parachain and parathread capabilities. However, it can already support around 1,000 transactions per second, a significant improvement over Ethereum's 13 transactions per second. Once parachains and parathreads have been implemented, it is expected that Polkadot will be able to scale to over one million transactions per second.
  
  
• Price -The circulating supply of DOT is at 987.579 million (its current total issuance is 1.12 billion) with a price of $33.3, equating to a market cap of $33 billion, which makes it the 8th most valuable asset in the cryptocurrency market (as of October 11, 2021). The DOT price has increased by over 200% since mid-July. However, it is still well below the high of $48 seen in mid-May 2021.

Ecosystem Adoption:

As parachains are not live on the Polkadot mainnet yet, adoption trends can be observed from usage and behaviour on the Substrate framework, which can provide a basis for expected adoption trends on the Polkadot mainnet.

• Adoption of the Substrate framework - There have been 22 independent Substrate-based blockchains whose mainnet versions have been launched including Polkadot, Kusama, Darwinia, Centrifuge, Clover, and SORA.
• Decentralized applications (dApps) - Hundreds of projects are built with Substrate or solutions that interact with Substrate-based blockchains, and will be fully compatible with the Polkadot ecosystem
• Number of Accounts holding DOT - The Network Adoption metric covers on-chain data, which shows various statistics of the Polkadot network, such as how many DOT accounts there are, and how many accounts hold DOT. Currently, 89,260,416 accounts hold DOT on the Polkadot mainnet.
• DOT Transaction Amount and Daily Transfer Count - Since July 16, 2020, the average daily on-chain transaction volume was 13.6 million DOT. Volume spiked to 194.8 million on August 18, 2020, the day the transfer function of the DOT token was enabled.
• Transfers on the Polkadot network - From July 12, 2021, to October 11, 2021, daily transfers (i.e., the act of sending funds from one account to another) averaged above 10,000, indicating a significant increase in the adoption of the network.

*All figures accurate at time of writing

Media contact:

Kristen Kaus
Kristen.Kaus@eqonex.com 

Heather Dale
heather.dale@eqonex.com 

Investor Relations Contacts:
Christian Arnell
ir@eqonex.com

Gateway Investor Relations:
Matt Glover
Diginex@gatewayir.com

About EQONEX Group

Eqonex Limited is a digital assets financial services company focused on fairness, governance, and innovation. The group encompasses cryptocurrency exchange EQONEX as well as an over-the-counter trading platform. It also offers a front-to-back integrated trading platform, Access Trading, a securitization advisory service EQONEX Capital, market leading hot and cold custodian Digivault, and asset manager Bletchley Park.

For more information visit: https://group.eqonex.com.

Follow EQONEX on social media on Twitter @eqonex, on Facebook @eqonex, and on LinkedIn

This press release is provided by Eqonex Limited (f.k.a. Diginex Limited "Eqonex") for information purposes only, is a summary only of certain key facts and plans of Eqonex and includes forward looking statements that involve risks and uncertainties. Without limitation, the press release does not constitute an offer or solicitation in relation to any securities or other regulated products or services or to make use of any services provided by Eqonex, and neither this press release nor anything contained in it will form the basis of any contract or commitment whatsoever. This press release has not been reviewed by any regulatory authority in any jurisdictions. Forward looking statements are statements that are not historical facts and are subject to risks and uncertainties, which could cause actual results or outcomes to differ materially from the forward-looking statements. Most of these factors are outside of Eqonex's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: Eqonex's limited operating history and history of net losses; Eqonex's ability to execute its business plan; the rate and degree of market acceptance of Eqonex's products; failure to obtain the requisite regulatory licenses and qualifications or establish partnerships with entities in certain jurisdictions to satisfy regulatory requirements; changes in laws or regulations; litigation and regulatory risks; Eqonex's inability to successfully identify, hire and retain skilled individuals; competition; Eqonex's inability to successfully develop technology to service its business lines and keep pace with rapidly changing technology and client or regulatory requirements; risks of cyber incidents; reliance on vendors and third-party service providers; inability to protect or preserve its proprietary rights and the risk of infringing on the intellectual property rights of others; potential conflict of interest arising from managing different business lines; risks of employee misconduct and manipulation of distributed ledger networks and smart contract technology by malicious actors; risk of Eqonex losing access to its private keys or data loss relating to its digital asset investments; the ability of Eqonex to grow and manage growth profitably; general economic and market conditions impacting demand for Eqonex's products and services, other business line specific risks and such other risks and uncertainties included in Eqonex's Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") on June 30, 2021, including those under "Risk Factors" therein, and in Eqonex's subsequent filings with the SEC, which are available on the SEC's website at www.sec.gov.

In addition, any forward-looking statements contained in this press release are based on assumptions that Eqonex believes to be reasonable as of this date. Eqonex undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Copyright (c) Eqonex Limited 2021.

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SOURCE EQONEX

FAQ

What are the key findings of EQONEX's research report on Polkadot?

The report highlights Polkadot's ability to improve governance, interoperability, and scalability in blockchain technology.

What is the current market cap of the DOT token associated with EQOS?

As of October 11, 2021, the market cap of the DOT token is $33 billion.

How much has the price of DOT increased since July 2021?

The price of DOT has increased by over 200% since mid-July 2021.

What transaction speed can Polkadot currently handle?

Polkadot can currently support around 1,000 transactions per second.

What is the main issue with Polkadot's current market status?

Polkadot is not fully launched and lacks parachain capabilities, which may impact its scalability.